Gilt repo – purchase and resale of gilts – interest paid to interim holder not required to be paid to original holder but recognised in repurchase price – application of paragraph 15 Schedule 9 FA 96 – related transaction – effect of section 737A to 737C and 730A TA 88 – effect of section 97 FA 96 – approach to section84 FA 96 – section 86 FA 96 determining which authorised accounting method to use.
Charles Hellier
[2007] UKSPC SPC00611, [2007] STI 1649, [2007] STC (SCD) 592
Bailii
Finance Act 1996 84(1), Income and Corporation Taxes Act 1988 730A 737A
England and Wales
Cited by:
Appeal from – DCC Holdings (UK) Ltd v HM Revenue and Customs ChD 17-Oct-2008
The court considered the taxation of ‘repo’ transactions. The revenue had charged to tax, an element of interest paid on a block og gilts purchased by the taxpayer company under a resale agreement at a price which allowed for the interest payments . .
At Special Commissioners – Revenue and Customs v DCC Holdings (UK) Ltd CA 10-Nov-2009
The company had entered into an agreement to purchase gilts, and at the same time to resell them at a future date for a fixed sum. In effect they provided a loan against the gilts. It sought to offset the profit against its trading losses.
At Special Commissioners – Revenue and Customs v DCC Holdings (UK) Ltd SC 15-Dec-2010
The taxpayer had entered into a ‘repo’ loan to its bank, agreeing to purchase a block of gilt edged securities, and to resell them at a later date at a fixed figure. The profit and figures included an allowance for the interest payments to be made. . .
Lists of cited by and citing cases may be incomplete.
Corporation Tax
Updated: 23 November 2021; Ref: scu.253403